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Where does the liability lie?
Whilst in the past commercial conveyancing solicitors have been able to pass the issue over to accountants I'm not sure that this is going to be the case in the future and especially after the new rules kick in post April 2014. Even under the old capital allowances rules i.e. pre April 2012 I hear commercial conveyancing solicitors were occasionally having to settle out of court because they had not given proper advice in this area.
In Clarke v Iliffes Booth Bennet [2004] EWHC 1731 a case not directly concerned with capital allowances, it was held that a solicitor had a duty of care to understand a contract to the extent necessary to give proper advice to the client and could not avoid the issue of tax indemnities but was under a duty of care to understand them. (paraphrased from Steven Bone & Martin Wilson, Capital Allowances: Transactions & Planning).
What is not in doubt for me as is touched on in the article by Andrew Stanley is that although a capital allowances claim may not be appropriate for all commercial property expenditure an accountant would be well advised to speak to a trusted specialist in the majority of cases to establish if or when a capital allowances claim could be made. The earlier a capital allowances specialist can be involved in many projects the more they can add value both for the accountant or solicitor and their client.
John Plumridge
Solicitors
Andrew
Yes we find the same thing. Solicitors have always relied on their ability to exclude any liability for tax advice and as far as I can see the new rules (because they are set in statute) remove their ability to do this. I think any court would find in favour of a property owner because who is best placed to understand the law in this instance? I think there has also been enough opportunity for solicitors to educate themselves on the matter. However we will just have to wait and see how this plays out in reality. Do you think companies will appear who encourage property owners to make a claim against their solicitor if they have not been given proper advice at the time of purchase?
John
wholly, exclusively and necessarily
I am intrigued by point number 2.
If a shoe manufacturing company were silly enough to hang a chandelier in the factory (in place of some of the strip lighting), why should it not claim Capital Allowances on said chandelier?
The item appears to be plant used in the business (for the purposes of the business) and, assuming there are no director/shareholder personal reasons for the acquisition of the chandelier, I see no reason not to claim Capital Allowances.
Have I missed something?
capital allowances claiming Backdated
Dear All
Would some one please advise me re claiming capital allowance for previous years.
Recently a potential client approached me. HMRC wants to check her documents re her tax return. The return filed by previous accountant is incorrect as numbers make no sense, no bank reconciled, hence no supporting. So I have to amend and submit a revised return.
She bought a car in 2009, no capital allowance or HP payments were claimed .
In short can she claim the allowance for 3 previous years( 2009/10, 2010/11 2011/12) on 2012/13 return.
Many Thanks